Question 1

At the equilibrium price,the quantity consumers desire to buy equals the quantity sellers desire to sell.

Accepted Answer

A) True 
 B)False

Question 2

One way to lessen the U.S.government budget deficit is to:

Accepted Answer

A) cut spending. 
B) increase spending. 
C) call-in government savings bonds. 
D) increase government social programs such as welfare,food-stamps,and Medicare. 
A) cut spending. 
B) increase spending. 
C) call-in government savings bonds. 
D) increase government social programs such as welfare,food-stamps,and Medicare.

Question 3

The higher the measurement of productivity,the higher the likely costs of production.

Accepted Answer

A) True 
 B)False

Question 4

Yesterday,Casey received a cable company ad for bundled TV,telephone,and Internet service that cost appreciably more than what she is currently paying.At the same time,she received a notice from her utility company that summer rates would be increasing.Her school books are costing almost twice what they cost last year,and yesterday,gasoline cost her 30 cents more per gallon than it did last week.As she ponders the situation,she can't help but wonder how prices could be rising when so many people have lost their jobs and are cutting back on expenditures.She is certain that this situation characterizes her economics professor's description of stagflation.

Accepted Answer

A) True 
 B)False

Question 5

Identify and describe the 4 basic rights that form the foundation of capitalism.

Accepted Answer

The four basic rights are the right to p

Question 6

Your professor showed you an Internet video of the chair of the Federal Reserve Bank speaking to the American public.The message he is conveying indicates that Fed economists are worried about inflation and believe the best course of action would be to slow the economy.Which of the following policies is the Fed most likely to pursue?

Accepted Answer

A) Increase taxes. 
B) Decrease interest rates. 
C) Restrict the money supply and increase interest rates. 
D) Devalue the dollar on international currency exchanges. 
A) Increase taxes. 
B) Decrease interest rates. 
C) Restrict the money supply and increase interest rates. 
D) Devalue the dollar on international currency exchanges.

Question 7

Microeconomics focuses on the decisions and behavior of people and organizations in particular markets.

Accepted Answer

A) True 
 B)False

Question 8

A young couple living in rural west-central Missouri heard about the closing of a local grocery store.Although a small operation,it served a small community that would now have to travel another 20 miles to the nearest grocery store.With help from a local realtor and banker,the couple purchased the store,remodeled it,and re-opened it.As new store owners,they had to carefully watch cash flow.As their customer base began to grow,they began offering hot food,and hired others to help with the operation.The economic benefit created in this story is called:

Accepted Answer

A) an economic intervention. 
B) an economic crisis control. 
C) the invisible hand. 
D) the deliberate process. Personal freedom is an important premise of wealth creation.Entrepreneurs,acting in their own self-interest need the personal freedom to own property and keep the earning from their hard work. 
A) an economic intervention. 
B) an economic crisis control. 
C) the invisible hand. 
D) the deliberate process. Personal freedom is an important premise of wealth creation.Entrepreneurs,acting in their own self-interest need the personal freedom to own property and keep the earning from their hard work.

Question 9

In socialist economies,the government owns some,if not most basic businesses such as telecommunications systems and utilities.

Accepted Answer

A) True 
 B)False

Question 10

Governments that were predominantly capitalistic are moving toward socialism,while governments that were predominantly socialistic are moving toward capitalism.

Accepted Answer

A) True 
 B)False

Question 11

John complained to his buddy,Frank,that prices have increased a lot over the past year.Frank disagreed,saying that the prices of some goods have gone up a bit,but other prices have declined,noting that you can get some good buys on houses right now.Frank feels that the average price of consumer goods hasn't changed.Frank and John can refer to the __________ to learn how government economists currently view the price situation.

Accepted Answer

A) GDP 
B) CPI 
C) PPI 
D) MEW 
A) GDP 
B) CPI 
C) PPI 
D) MEW

Question 12

A rising GDP,rising unemployment rate,and rising inflation rate signify a healthy economy.

Accepted Answer

A) True 
 B)False

Question 13

Discuss the views of economist Adam Smith.How does the "invisible hand" philosophy suggested by Smith benefit society as a whole?

Accepted Answer

Adam Smith believed in a free-market sys

Question 14

A typical demand curve shows that:

Accepted Answer

A) As people earn more income,they buy more of a good. 
B) As supply increases,the amount purchased decreases. 
C) People tend to buy more of a good than they really want. 
D) People tend to buy more of a good when its price decreases. 
A) As people earn more income,they buy more of a good. 
B) As supply increases,the amount purchased decreases. 
C) People tend to buy more of a good than they really want. 
D) People tend to buy more of a good when its price decreases.

Question 15

Fiscal policy involves increases or decreases in:

Accepted Answer

A) The money supply. 
B) Interest rates. 
C) Government spending and taxes. 
D) Exports and imports. 
A) The money supply. 
B) Interest rates. 
C) Government spending and taxes. 
D) Exports and imports.

Question 16

Which of the following statements about capitalism is the most accurate?

Accepted Answer

A) In capitalist economies,most resources are owned by the government. 
B) A strength of capitalism is its ability to deal with environmental problems. 
C) Capitalism is characterized by unequal distribution of wealth and income. 
D) A drawback of capitalism is that people have little freedom to pursue their own goals. 
A) In capitalist economies,most resources are owned by the government. 
B) A strength of capitalism is its ability to deal with environmental problems. 
C) Capitalism is characterized by unequal distribution of wealth and income. 
D) A drawback of capitalism is that people have little freedom to pursue their own goals.

Question 17

Communism is an economic system in which:

Accepted Answer

A) The government and private citizens own equal shares of the economic resources. 
B) Almost all of the productive resources are owned by private businesses. 
C) The government makes almost all of the major economic decisions. 
D) Individual consumers make all economic decisions. 
A) The government and private citizens own equal shares of the economic resources. 
B) Almost all of the productive resources are owned by private businesses. 
C) The government makes almost all of the major economic decisions. 
D) Individual consumers make all economic decisions.

Question 18

Recently,Hugo Chavez,the Prime Minister of Venezuela,announced that he is standing behind the concept of state owned utilities,public schools,and the communications industry of his nation.Although not all industry is owned and managed by the government,his ideas would lead one to believe that he has a preference for:

Accepted Answer

A) A capitalistic state 
B) A socialistic state 
C) A communistic state 
D) A nationalistic state 
A) A capitalistic state 
B) A socialistic state 
C) A communistic state 
D) A nationalistic state

Question 19

In 2010,the U.S.unemployment rate was at its lowest point in 10 years.

Accepted Answer

A) True 
 B)False

Question 20

A simple supply curve shows a relationship between the:

Accepted Answer

A) Amount of labor a firm hires and the amount of output it can produce. 
B) Amount of time required to produce a good and the relevant production costs. 
C) Price of a good and the quantity of that good sellers are willing to offer for sale at a specific point in time. 
D) Amount of a good a firm produces and the amount demanded by consumers. 
A) Amount of labor a firm hires and the amount of output it can produce. 
B) Amount of time required to produce a good and the relevant production costs. 
C) Price of a good and the quantity of that good sellers are willing to offer for sale at a specific point in time. 
D) Amount of a good a firm produces and the amount demanded by consumers.

At the equilibrium price,the quantity consumers desire to buy equals the quantity sellers desire to sell.

One way to lessen the U.S.government budget deficit is to:

The higher the measurement of productivity,the higher the likely costs of production.

Identify and describe the 4 basic rights that form the foundation of capitalism.

Microeconomics focuses on the decisions and behavior of people and organizations in particular markets.

In socialist economies,the government owns some,if not most basic businesses such as telecommunications systems and utilities.

Governments that were predominantly capitalistic are moving toward socialism,while governments that were predominantly socialistic are moving toward capitalism.

A rising GDP,rising unemployment rate,and rising inflation rate signify a healthy economy.

Discuss the views of economist Adam Smith.How does the "invisible hand" philosophy suggested by Smith benefit society as a whole?

A typical demand curve shows that:

Fiscal policy involves increases or decreases in:

Which of the following statements about capitalism is the most accurate?

Communism is an economic system in which:

In 2010,the U.S.unemployment rate was at its lowest point in 10 years.

A simple supply curve shows a relationship between the:

Taking Risks and Making Profits Within the Dynamic Business Environment

Doing Business in Global Markets

Demanding Ethical and Socially Responsible Behavior

How to Form a Business

Entrepreneurship and Starting a Small Business

Management and Leadership

Structuring Organizations for Todays Challenges

Production and Operations Management

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Union and Employeemanagement Issues

Marketing: Helping Buyers Buy

Developing and Pricing Goods and Services

Distributing Products

Using Effective Promotions

Understanding Accounting and Financial Information

Financial Management

Using Securities Markets for Financing and Investing Opportunities

Money,financial Institutions,and the Federal Reserve

test Planning Table for Bonus Chapter A

Using Technology to Manage Information

Managing Risk

Managing Personal Finances

Filters

Exam 2: Understanding Economics and How It Affects Business

At the equilibrium price,the quantity consumers desire to buy equals the quantity sellers desire to sell.

One way to lessen the U.S.government budget deficit is to:

The higher the measurement of productivity,the higher the likely costs of production.

Identify and describe the 4 basic rights that form the foundation of capitalism.

Microeconomics focuses on the decisions and behavior of people and organizations in particular markets.

In socialist economies,the government owns some,if not most basic businesses such as telecommunications systems and utilities.

Governments that were predominantly capitalistic are moving toward socialism,while governments that were predominantly socialistic are moving toward capitalism.

A rising GDP,rising unemployment rate,and rising inflation rate signify a healthy economy.

Discuss the views of economist Adam Smith.How does the "invisible hand" philosophy suggested by Smith benefit society as a whole?

A typical demand curve shows that:

Fiscal policy involves increases or decreases in:

Which of the following statements about capitalism is the most accurate?

Communism is an economic system in which:

In 2010,the U.S.unemployment rate was at its lowest point in 10 years.

A simple supply curve shows a relationship between the:

Taking Risks and Making Profits Within the Dynamic Business Environment

Doing Business in Global Markets

Demanding Ethical and Socially Responsible Behavior

How to Form a Business

Entrepreneurship and Starting a Small Business

Management and Leadership

Structuring Organizations for Todays Challenges

Production and Operations Management

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Union and Employeemanagement Issues

Marketing: Helping Buyers Buy

Developing and Pricing Goods and Services

Distributing Products

Using Effective Promotions

Understanding Accounting and Financial Information

Financial Management

Using Securities Markets for Financing and Investing Opportunities

Money,financial Institutions,and the Federal Reserve

test Planning Table for Bonus Chapter A

Using Technology to Manage Information

Managing Risk

Managing Personal Finances

Filters